Our firm’s primary goal is helping our clients realize their personal and financial goals. As an investment management firm, we preach the simplification and diversification of client assets and the lowering of investment costs through the use of no-load mutual funds. We work with clients to understand their individual needs and goals. Investments are recommended amongst a variety of assets, asset classes and maturities. While there is a wide variety of available investment vehicles, our research has shown that mutual funds provide better risk/adjusted investment return, diversification and liquidity at a lower cost than other investment vehicles such as stocks, bonds, ETFs, etc. Diversified portfolios are assembled for each client based on their own individual goals and risk tolerance. Portfolios are managed on a discretionary basis.

Our expertise lies in our ability to consistently monitor all mutual funds across a broad array of asset classes and displaying precise research as to why one mutual fund is preferred over another.

Arroyo Investment Group’s monitoring of investment choices offered to clients include, but are not limited to, the following:

• Quarterly review and analysis of risk levels and returns of each Fund;
• Quarterly comparability data showing how each Fund's performance compared with other alternative investments of similar type for the previous quarter;
• Quarterly review of management of each fund including any changes in investment managers, fees, operation, etc;
• Quarterly analysis as to how the Funds are meeting the requirements of the investment guidelines;

Arroyo Investment Group’s investment analysis relies primarily on the Morningstar database as an integral source for information. With access to over 17,500 mutual funds, Morningstar is one of the most comprehensive databases available to investment advisors.

In addition, Arroyo Investment Group conducts its own internal research utilizing market information and specific fund information derived from Standard & Poor's, Dow Jones, CNN, as well as through private fund analysis. Furthermore, Arroyo Investment Group uses a multi-step Red Flag process which is set against a series of preset tolerance parameters for each fund to guide investment decisions. Additionally, Arroyo Investment Group visits with its selected mutual funds either through on site visits at Arroyo Investment Group or off-site visits at the offices of the mutual fund companies.

If a fund should begin to perform in an uncharacteristic fashion due to poor relative performance, increased volatility or a loss of relative momentum due to a change in management or philosophy, Arroyo Investment Group would use this information in deciding whether to keep or terminate a particular mutual fund in client accounts.

Within each of the investment categories, the funds would be compared and ranked against similar investment category funds based upon the following criteria:

• Return
• Volatility
• Risk Adjusted Return
• Morningstar Ratings
• Fund Assets
• Overall Composite Ranking

With the data and information made available through the search process, Arroyo Investment Group would make a final selection as to utilizing a particular mutual fund within client portfolios.